Current Issues in Life Assurance
For annuity writers, a key challenge is the need to fund capital-consumptive new business strain (NBS) as a consequence of writing the business intended to fund future distributions.
Reinsurance, investment strategy and capital provision all have roles to play. Here, we:
- examine success stories to-date and consider how NBS might impact future progression of the BPA market
- look at how firms manage NBS and the other levers available to boost capital generation throughout the product lifecycle
- consider how, with IFRS17 on the horizon, changes in reinsurance usage and management of accounting profits might change the story.